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Bingel [31]
3 years ago
10

To obtain the dollar sales volume necessary to attain a given target profit, which of the following formulas should be used? Mul

tiple Choice (Fixed expenses + Target net profit)/Total contribution margin (Fixed expenses + Target net profit)/Contribution margin ratio Fixed expenses/Contribution margin per unit Target net profit/Contribution margin ratio
Business
1 answer:
steposvetlana [31]3 years ago
6 0

Answer:

(Fixed expenses + Target net profit)/Contribution margin ratio

Explanation:

The formula to compute the dollar sales volume for attaining the target profit is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin ratio)

where,

Fixed expenses = Fixed cost

Target profit = The budgeted profit

And, the contribution margin ratio is

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

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Answer:

Correct option is D

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Suppose Clampett, Inc. terminated its S election on August 28, 2018. At the end of the S corporation's short tax year ending on
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3 years ago
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